Kia Q2 net jumps 40 pct on weak won, SUVs

Kia Corp., South Korea’s second-biggest carmaker, said Friday its second-quarter net profit jumped 40 percent from a year earlier on an improved product mix and a weak won.

Net profit for the three months ended in June rose to 1.88 trillion won (US$1.43 billion) from 1.34 trillion won in the same period of last year, the company said in a statement.

The second-quarter bottom line was buoyed by increased sales of high-end SUV models, decreased incentives and the won’s weakness against the dollar, the statement said.

The dollar rose to an average of 1,259.57 won in the second quarter from 1,121.23 won a year ago, according to the Bank of Korea.

Such factors helped offset the carmaker’s production losses derived from a prolonged chip shortage and disruptions of parts supplies, Kia said.

Operating profit also soared 50 percent to 2.23 trillion won in the second quarter from 1.48 trillion won a year ago. Sales were up 19 percent to 21.87 trillion won from 18.34 trillion won.

From January to June, net profit climbed 23 percent to 2.91 trillion won from 2.38 trillion won a year earlier.

Operating profit jumped 50 percent to 3.84 trillion won from 2.56 trillion won during the same period. Sales gained 15 percent to 40.23 trillion won from 34.92 trillion won.